The government has announced that it is to make controls on recruitment and advertising spending permanent, the Cabinet Office has said.

Francis Maude, Cabinet Office minister, announced today that the controls, which include all IT contracts over £5 million and all leases over £100,000 being signed off centrally by the Efficiency and Reform Group, will be a permanent fixture. The controls were announced in 2011 and were set to run until 2015.

Speaking today, ahead of his meeting with the government’s top 20 suppliers, Maude said: “Our cross-Whitehall controls on spending have made billions of cash savings for the taxpayer – something that has never been done before. That’s why I’m pleased to confirm that our controls will be a permanent feature, helping to change fundamentally the way government operates.

“I want Whitehall procurement to become as sharp as the best businesses’. Today, I will tell companies that we won’t tolerate poor performance and that to work with us you will have to offer the best value for money.”

The controls will be applied to five areas of spend: Advertising, marketing and communications, commercial, ICT & Digital, HR and workforce and property.